Housing market still soaring

Allison Wollam
Houston Business Journal

The Houston housing market is continuing on an upward trend, but the growth rate has slowed from last year's breakneck pace, according to statistics released by the Houston Association of Realtors Multiple Listing Service.

Total property sales for February totaled 4,925, which was a 4.6 percent increase over February 2004.

More than $836 million worth of properties changed hands during the month, which was a 10.1 percent increase compared to last year's $760 million in February sales.

Additionally, year-to-date total property sales reached 8,795, an increase of 3.5 percent over the first two months of 2004.

All listing categories combined, Houston's overall housing market in February experienced increases across the board including sales, available inventory, pending sales and overall total dollar volume on a year-over-year basis.

The number of available homes at the end of February was 42,330 properties, which was an increase of 11.3 percent versus last February and a new monthly record.

The month's inventory of single-family homes for February remained relatively flat at 5.9 months, which shows that demand is keeping up with the available supply of homes.

The overall median price of a single-family home reached $136,880 in February, an increase of 5.9 percent compared to the prior year. The average price for a single-family home reached $178,387, a 4.9 percent increase.

Houston's current median home price of $136,880 is 26.8 percent less than the national median price, which reached $186,900 in January, according to statistics released by the National Association of Realtors.

Houston Habitat for Humanity Reaches 500th House Milestone

HOUSTON-- It has taken tens of thousands of volunteers, more than 40,000 nails, over $20 million and 499 very special, hard-working families to pave the way for the construction of the 500th Houston Habitat for Humanity home. On Saturday, April 2, the dream of one hard-working Houston family will come true as walls are raised for this historic construction project in Northeast Houston as Habitat's "Week of 500 Dreams" celebration gets under way.

David Yates, host of the "KTRH Home Improvement Hotline" radio call-in show on AM 740 heard weekend mornings from 7 to 10 a.m., will invite his listeners and all Houstonians to assist him in raising the $50,000 in needed donations to help defray the cost of the project. The "Week of 500 Dreams," underwritten by The Lennar Family of Builders, will feature several events commemorating the construction of the 500th home.

Yates and volunteers will assist with the construction of the home which will be built over the course of one week. In contrast, volunteers took over a year to construct the first Houston Habitat home. On Saturday, April 9, The Lennar Family of Builders will collaborate with Special Olympics to host a unique workday called "Project Opportunity."

Houston Habitat for Humanity has been building affordable housing for hard-working, low-income families since 1987. Through partnerships with community based sponsors, Houston Habitat provides home buyer families with the opportunity to purchase homes at-cost and with zero-interest loans. On average, Houston Habitat homeowners pay $450 per month including insurance and property taxes. Homebuyers contribute "sweat equity" by working alongside volunteers or staff to offset down payment requirements.

"Every weekend I try to help Houstonians improve their homes, sometimes highlighting the most extravagant building techniques," said Yates. "However, I'm proud that many of the same energy efficient products and methods of construction being used in the $3 million KTRH/Glass Craft Door Company 'DreamHome' will also be used in our Habitat home.

"Now, through Houston Habitat for Humanity's program, along with my listeners, colleagues and friends, I have a chance to help a family who would otherwise never have the opportunity purchase a house," he continued.

The 500th Houston Habitat for Humanity home will be constructed in Wood Glen Subdivision, where Houston Habitat has built more than 200 homes since 1995.

"Habitat for Humanity cares as much about creating neighborhoods as we do about providing shelter to Houston families," said Houston Habitat for Humanity President and CEO Laurence J. Payne. "It's fitting that we have the chance to build the 500th Houston Habitat home in Wood Glen."

ABOUT HOUSTON HABITAT FOR HUMANITY:

Houston Habitat for Humanity is a not-for-profit organization that provides new homes for hard-working, low-income Houstonians who otherwise would not be able to afford a mortgage. The organization provides zero-interest loans to first-time homebuyers who partner with volunteers and sponsors to build their own homes in neighborhoods throughout Houston and Harris County. In addition, Houston Habitat operates a Building Supply Outlet store six days a week at 6161 South Loop East at South Wayside Drive where homeowners, remodelers and contractors can find high-quality building materials and fixtures and furniture at deeply discounted prices. All proceeds from purchases at the store benefit Houston Habitat for Humanity.

For more information about Houston Habitat for Humanity

Income for Texas families trailing rising home prices

Despite recent industry forecasts that the Texas economy is growing, research economists with the Real Estate Center at Texas A&M University in College Station say statistics show paychecks aren't keeping pace.

Since the end of 2003, the average income of Texas households has dropped by 2 percent, while the median sales price of a Texas home is up by more than 3 percent to $129,900.

As a result of this, researchers at the Real Estate Center say less than half of Texas households -- about 49.5 percent -- can afford to buy an average-priced home, compared with 52.8 percent a year ago.

"The combination of lower household incomes and higher home prices means that fewer Texas households can afford to buy a home compared with the year before," says Jack Harris, a research economist with the Real Estate Center in College Station.

However, he adds that interest rates, which fell 12 basis points throughout the past year, managed to soften the blow somewhat.

The Texas Housing Affordability Index, which tracks the relationship between housing costs and incomes in most metropolitan and a few non-metropolitan areas of the state, fell to .99.

According to the center, this means that the average household income is 1 percent below that needed to buy a median-priced home. In the fourth quarter of 2003, the index was 1.04.

For first-time home buyers, housing is even less affordable. The First-Time Homebuyer's Affordability Index is .91, meaning that the average income of a renting household in Texas is 9 percent short of the amount needed to buy the median-priced starter home with a loan covering 95 percent of its value.

According to the real estate center, the FTHAI was .95 a year ago.

However, despite the statewide trend, housing became more affordable in some metropolitan statistical areas.